A new crypto market report, titled What's Next for Cryptocurrency Exchange, reveals that Nigeria has the second largest market in Africa after South Africa in terms of crypto market size.
The report states that South Africans use cryptography primarily as an alternative investment, while Nigerians use cryptography primarily for savings.
The report was done by a cryptocurrency exchange, Bitget, in partnership with the famous American management consulting firm, Boston Consulting Group (BCG) and crypto-focused investment firm, Foresight Ventures.
The report dives into the competitive landscape of crypto exchanges, unveils substantial development trends in crypto trading markets, its role in enabling the Web3 economy and shares insights on how to navigate the crypto space during a bear market.
The report explains that the African continent’s cryptocurrency centralized exchange trading accounts for less than 1% of the spot and derivative trading seen around the world.
It went further to rank South Africa as #1 on the continent as a result of the country’s “more advanced financial infrastructure and fiat-to-crypto payment rail.”
In terms of Africa’s future potential in the cryptocurrency space, the report reads, “We expect strong growth in crypto adoption in Africa. However, derivatives may lag given their limited use in traditional markets.”
In Bitget, we launched an innovative trading product called the ‘One-click copy Trade’.
This is a pioneer use case in social trading and has amassed over 55,000 professional traders, with approximately 1.1 million followers. This feature allows new players and veteran traders to learn from and follow different trading strategies and participate and earn their share from the crypto market in just one click.
This is part of our mission of ‘Better Trading, Better Life’ for everyone. Both the traders and copiers benefit from the outcome of their trades and presently we are the world’s largest crypto copy trading platform and one of the five largest crypto derivatives exchange platforms according to Coingecko.
Interest nuggets from the Report
According to the report, only 0.3% of individual wealth is invested in crypto. For comparison, over 25% is invested in equities. This indicates that there is significant headroom for growth.
The report mentions that the crypto space is still at the beginning of the adoption curve. When comparing the adoption curve of web 3.0 vs the internet in the 1990s, we can observe that crypto is set to hit 1 billion users by 2030 (if the current growth rate continues).
Institutional adoption is rising (and fast). Hedge funds and VCs doubled their crypto exposure from $35b to $70b from Q4 2020 to Q4 2021. BCG stated that they expect “allocations to continue to rise,” with institutional investment, “picking up momentum.”
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The report explains that developing countries offer huge scope for growth.
They have higher crypto penetration than developed countries, as crypto provides unique opportunities amongst less mature financial infrastructure.
The report stated that these markets could pave the way for day-to-day web3 use cases.
Both centralized and decentralized exchanges are set to experience growth.
The report explains that the future will consist of “co-existence” between both CEXs and DEXs. CEXs currently dominate the derivatives trading sector, whereas DEXs will see “strong volume growth in the spot segment.”
